Black Friday and Handmade Gifts: Understanding U.S. Consumer Choices This Holiday Season

The impact of Black Friday on shopping is undeniable. For many entrepreneurs, it is about building awareness of new products and offering discounts to drive more revenue. With the market for handmade goods expanding, stakeholders need to understand the underlying motivations driving the purchases, especially during the peak gifting season. This means understanding consumer behavior through analyzing the e-commerce platforms selling handmade goods, and data from the social media platforms that Black Friday enthusiasts use during this season. 

In this data study, we collected data on consumer behavior when purchasing handmade Christmas gifts during Black Friday in the United States by analyzing purchase timings, purchase channels, consumers’ pain points, and the main factors affecting purchase decisions.

Black Friday season starts after the U.S. Thanksgiving holiday, celebrated on the fourth Thursday of November, and signifies the onset of the Christmas shopping season. It originated in the USA and has been spreading to other parts of the world over the last decade, greatly influencing Canada, Europe, and the UK.

The retail industry uses Black Friday to run sales and offer special promotions until 24 December. It is also becoming common for retailers to start offering Black Friday deals well in advance of the actual date. This means consumers can purchase high-margin goods at an affordable price during Black Friday, making it a very anticipated season.

The sales figures on Black Friday are used to tell the overall economic health of the country. It’s a way for economists to measure the confidence of the average American with their discretionary spending.

Prior research conducted between 2020 and 2024 has found that the great discounts offered by firms during Black Friday fuel fierce competition which in turn affects consumer behavior in different ways:

Although these findings are a good starting point for understanding consumer behavior during this period, we need to investigate the consumers' identities and the specific triggers of Black Friday purchases more thoroughly.

The following results were obtained from the survey results collected from a sample of first-hand consumers who purchased handmade gifts within the last 365 days on Black Friday.

The analysis drawn from social media interactions and data collected from e-commerce platforms showed that buyers interested in purchasing handmade Christmas gifts on Black Friday fall are in the 25-45 age bracket. 

Younger consumers between the ages of 18-24 also participate but as the minority group, spending the least amount because they have the least disposable income. Women make up 75% of the consumer base and are more likely to get personalized items than men.

On average, these buyers purchase 2 to 3 handmade items annually, spending up to $150 per item, although the spending might go up for personalized items, and high-quality artisanal products. 

The research also showed that consumers are more loyal to specific handmade categories other than brands, with positive prior experiences contributing to a great likelihood of returning to the same shop. With Black Friday sales, impulsive buying is relatively common, especially with unique products and flash sales that stimulate a sense of urgency.

Handmade gifts are especially popular during the holiday season as they offer a personal and meaningful touch. Some categories that stood out from the research are:

The Black Friday shopping experience, even if greatly anticipated, isn’t always a smooth one. Consumers experience some common issues such as expensive and delayed shipping which is critical, especially given the holiday’s time sensitivity. Additionally, due to the high shopping traffic, some retail websites crash or run out of stock mid-shopping.

From the research, we deduced that consumer behavior on Black Friday is shaped by the following factors.

Many shoppers check out deals right after Thanksgiving, aiming to secure the best prices before items sell out. Around 70% of Black Friday handmade purchases happen between Thanksgiving and Cyber Monday. The peak purchase period is on the day itself and the preceding weekend. 

This is influenced by the perception of scarcity and fear of losing out on good deals. Sellers who clearly communicate limited deals and stock take full advantage of this perception to make big sales.

Shoppers on Black Friday are often strategic—they research products in advance, compare prices, and look for exclusive deals or limited-time offers.

Different buyers have different motives. They are looking for something more than what is available in chain stores. The desire for unique gifts, sustainability promotion and support of local artists inspire Black Friday purchases.

70% of Black Friday sales are driven by the product discounts offered. However, this differs among different consumer groups depending on the availability of disposable income, the consumers’ psychographs and intentions. Impulsive shoppers are less conscious about the price and are more focused on the quality and value of the product than they are on the discount offered.

80% of consumers are shying away from in-store buying during Black Friday and turning to online shopping because of its convenience, especially with the high shopping traffic. E-commerce platforms like Etsy (40%), Amazon Handmade (15%), and WooCommerce (25%) are gaining popularity, for selling unique hand-crafted items. 

However, there is a remaining percentage that prefers visiting physical stores because it enhances their satisfaction and reduces the risk perceived, which is essential when purchasing crafts with the intent of gifting them. A growing trend, omnichannel retailing combines both online and physical shopping for a seamless shopping experience. A retailer that adopts this innovation can take full advantage of Black Friday.

Social media platforms, TikTok, Pinterest, and Instagram are the main hang-out spots for black Friday enthusiasts. They have become marketing channels where sellers launch new products, and communicate limited promotions and discounts during Black Friday. 

Here, consumers also share their purchase experiences, reviews, and testimonials, including photos and videos of real-time applications of their purchased products, influencing others’ decisions to buy.

Consumers are looking for a promise of quality assurance, reliability, consistency, and authenticity in a brand. Although a good brand reputation works well for handmade items, consumers are more concerned about the creativity and craftsmanship of a brand. Newer brands attract customers during Black Friday by telling stories behind their products to add a personal touch. 

Since large brands don’t work towards fostering this personal connection with consumers, they make up for it using big discounts on the products.

The visual appeal of a product, the color, material, form, packaging, and a good unboxing experience enhances its perceived value. For a Christmas gift, the beauty and uniqueness of a product is the first thing to attract a buyer, followed by its utility. 

When a retailer provides their customers with customization options to enhance the aesthetic appeal of a product, it makes them feel empowered and attached to the product, which in turn increases the odds of purchase.

The holiday season holds a special place for the sale of handmade items. It is a season to reap great benefits for both retailers and consumers. While it presents numerous opportunities, it also brings challenges that require innovative and sustainable approaches. 

By understanding the motivations behind consumer behavior, like a desire for uniqueness, environmental sustainability, and quality products, handmade sellers can strategically tailor their products to meet these preferences.

Retailers can respond positively to consumers’ pain points such as expensive and delayed shipping, lagging websites, and running out of stock on sale, to gain lasting customer loyalty and boost sales.